What is the difference between a payday loan broker and a payday loan lender?
There are a number of differences between a payday loan broker and a payday loan lender. The main one is that a broker will take your details and find a suitable loan for you. A lender is the company who actually loans you the money.
Here's what else you need to know:
Payday loan brokers
A payday loan broker provides a service, taking your details and searching for a payday loan that suits you, your circumstances and your credit rating. While on the positive side, the broker helps to find a loan from the lots of options available, a negative problem is that you generally need to agree to your information being used by lots of payday loan companies. This could mean you are inundated with calls and emails regarding a payday loan, or debt management companies.
Advantages of using a payday loan broker
Disadvantages of using a payday loan broker
Payday loan lenders
When brokers go searching for a loan, they contact payday loan lenders. Lenders are the companies that actually lend you the cash. Brokers do not lend you the money.
Advantages of using a payday loan lender directly
Disadvantages of using a payday loan lender directly
So whether you decided to work with a loan broker or go directly to a lender is completely up to you depending on your circumstances. You may feel that having a company do all the leg work to find a loan is easier, however, you may be put off by the calls and texts from third parties trying to offer you a loan. Applying for a loan directly with a lender is a great option, particularly if you have a relatively good credit rating as you may only need to apply to one lender to successfully receive your loan.